Dragni Dragnev

Pharmacyte Biotech Inc (OTCMKTS:PMCB) Is Up Once More

by Dragni Dragnev January 15, 2016

Investors didn't really react well to Pharmacyte Biotech Inc (OTCMKTS:PMCB, PMCB message board)'s latest 8-K – until company management gift-wrapped it in boastful terms and plastered it on the company's newsfeed that is.

Without a doubt “PharmaCyte Biotech Raises Additional $1 Million for Pancreatic Cancer Clinical Trial” is a good title for a press release – one that catches the eye and arouses investor interest.

However, one would be remiss not to mention that said boast is a bit one-sided. Another accurate title would be “PMCB drowns investors in even more dilution, shares now sold to undisclosed persons for $0.06 a pop”.

Because, when you get right down to it, that's what PMCB actually did - and truth be told, if PMCB's share structure wasn't so horribly bloated, that would have been a pretty sweet deal. As it is now, with said share structure tipping dangerously close to the billion threshold, whether or not PMCB did the right thing is certainly debatable.

What is not up for debate is the fact that since PMCB has given noteholders the opportunity to convert debt at $0.06, the ticker may have a hard time rising above that threshold. And even if it does, until that debt is spent, there will always exist the possibility of the noteholders converting PMCB debt at a little over a nickel a pop and dumping the resulting stock on the market for huge profits.

Investors should definitely keep those facts in mind as they decide whether or not PMCB is worth considering.

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